Johnson & Johnson had the following transactions for June 2023:

• Sold pharmaceutical products for $900,000 on account.
• Provided medical services worth $450,000, to be paid next year.
• Received $225,000 in advance for a service contract to be performed in July 2023.
• Paid salaries of $150,000, with an additional $75,000 accrued.

Required:

1. Record these transactions in the general ledger.
2. Prepare the necessary adjusting entries at year-end.
3. Discuss the importance of revenue recognition principles and adjusting entries in financial accounting.

Question 98: Financial Ratios and Analysis